Van Finance

Spread the cost.
Keep cash in the business.

Van finance lets you get on the road without tying up working capital. This guide explains the main options — HP, PCP and finance lease — so you can choose the right structure for your business before you apply.

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Finance options

HP, PCP or Finance Lease?

Own at the end

Hire Purchase (HP)

Pay a deposit, then fixed monthly instalments. Own the van outright once the final payment is made. Simple, predictable, and you build equity from day one.

You own the van at the end
No annual mileage limit
Fixed rate, fixed term
Easy to budget for

Best for: businesses that want to own their assets

Flexible exit

PCP (Personal/Business Contract Purchase)

Lower monthly payments because you defer a large 'balloon' at the end. At term you can own the van, hand it back, or use equity as a deposit on your next one.

Lower monthly payments than HP
Flexible end-of-contract options
Suits mileage-conscious buyers
Good if you upgrade regularly

Best for: buyers who want flexibility or low monthly cost

Business only

Finance Lease

Lease the van long-term and pay a final residual. The funder retains ownership — often more tax efficient for VAT-registered businesses. Popular with tradespeople.

Often lower deposit requirement
VAT-registered businesses can reclaim input VAT
No balloon ownership risk
Suited to high-mileage operators

Best for: VAT-registered businesses, high mileage operators

Buyer tips

5 things to check before you sign

1Always compare the total cost of credit, not just the monthly payment
2A larger deposit means lower interest payments overall
3Check whether the rate is fixed — some PCP deals have variable elements
4Ask about settlement figures before signing — understand your exit costs
5Pre-approval gives you negotiating power at the dealership

Important

We're not a lender or broker

Vansales provides this guide for information only. We do not offer finance directly, nor are we authorised to give financial advice. For a personalised quote, speak to a finance broker or your bank. Always read the full credit agreement before signing.

Finance is credit. Think carefully before using any loan to buy a vehicle. Your van may be repossessed if you do not keep up repayments.

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